Asian stocks close lower, eyes on China lockdowns and recession risks

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Asian stocks closed lower on Wednesday (6), amid renewed fears over the Covid-19 situation in China and the possibility of a global recession.

In mainland China, the Shanghai Composite index tumbled 1.43% today to 3,355.35 points, and the less comprehensive Shenzhen Composite slipped 1.15% to 2,207.20 points.

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Earlier this week, the Chinese government enacted lockdowns in regions that have seen an increase in Covid-19 cases, at a time when lockdowns motivated by the disease are being removed in Shanghai.

“Although investors have been trying to price in that the worst of the pandemic in China is over, any slight advance in cases will bring up the risks of economic restrictions, which will lead to the reversal of some bullish bets”, commented the IG market strategist. , Yeap Jun Rong.

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There are also concerns in global markets that soaring inflation and the trend of monetary tightening will push the world economy into a recession. This factor knocked down European stocks and caused strong volatility on Wall Street last Tuesday.

Elsewhere in Asia, Japan’s Nikkei index fell 1.20% in Tokyo on Wednesday to 26,107.65 points, while the Hang Seng index fell 1.22% in Hong Kong to 21,586.66 points, the south-west. Korean Kospi fell 2.13% in Seoul, at 2,292.01 points, and Taiex lost 2.53% in Taiwan, at 13,985.51 points.

In Oceania, the Australian stock exchange was also in the red, with the S&P/ASX 200 down 0.52% in Sydney, at 6,594.50 points.

Source: CNN Brasil

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